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Why should we prepare profit
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Answer Posted / gopal kumar bhagat
"THE COMPANIES ACT 1956" ,specifies that p/l appropriation a/c is prepared to ascertain how the net profit earned by the company is distributed among various sectors such as general reserve approx(20% of n.p),interim dividend,provision for taxation,etc...this a/c also helps the general persons to know about the net profit distribution channels of the company and make them interested to invest in their shares
by gopal bhagat
student of icai
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